SoftBank’s Son Looks At Further Indonesia Investing

On Friday, SoftBank Group Corp founder and CEO Masayoshi Son indicated that he would like to develop his tech conglomerate’s investments in Indonesia.

The information has been disclosing remarks after a conference with President Joko Widodo.

In comments reported by local media, Son stated, “We don’t discuss the specific numbers yet, but the new smart city, newest technology, clean city, with a lot of AI, that’s what I’m interested in supporting.”

Moreover, the statement was verified by a company spokesperson.

Earlier this week, the comments came after Indonesian coordinating affairs minister for maritime affairs and investment Luhut Pandjaitan informed reporters that the Japanese tech billionaire was interested in investing in the country’s new capital city.

The investment will replace the megacity of Jakarta.

On the flip side, Son did not summarize the specific plans to invest in the new capital. In addition, it will be producing on the island of Borneo.

SoftBank’s investments in the world’s fourth most populated country consist of a $2 billion commitment.

In July, the revelation was via portfolio company Grab. The company is Southeast Asia’s top ride-hailing service provider.

Meanwhile, the funds will be to encourage the use of electric vehicles in Indonesia. It is a primary concern by the government as it attempts to enhance congestion and air quality in traffic-clogged Jakarta.

Softbank-Backed Firms Reveal Lay-Offs

Elsewhere, Start-ups financed by SoftBank declared lay-offs are affecting hundreds of workers this week. It was after the Japanese conglomerate keeps forced its investments to cut expenses and turn quick profits.

Zume, a San Francisco-area firm, aimed to produce and deliver pizzas using robots. Currently, it is cutting 360 employees. The count is more than half of its workforce and ditching that original business.

The firm has been appraising at more than $2bn. It was after SoftBank led a $375m funding round in 2018.

Now, it intends to focus on producing packaging made from plant fibers.

Moreover, the SoftBank-backed car-sharing firm Getaround this week also slashed about 150 employees or 25 percent of its staff. The information was according to one person updated on the matter.

The announcements come as SoftBank pushes for alterations at companies backed by its $97bn Vision Fund.

It is also reconsidering its strategy in the wake of the halted public offering of one of its most significant investments. It is the property firm WeWork.

On a recent earnings call that Vision Fund companies, Masayoshi Son, SoftBank chief executive, stated that it must be “self-financing,” calling its $9.5bn rescue package for WeWork an “exception.”

Last November, WeWork indicated it would cut 2,400 workers internationally.

Late last year, a number of other SoftBank-backed start-ups, comprising the car leasing company Fair and construction group Katerra.

The firm revealed lay-offs affecting hundreds of employees.